Money held in an ELN source account is trust money in the form of transit money of whichever law practice is able to control those funds; that is, nominate the destination account.
The law practice that controls the transit money must record and keep brief particulars sufficient to identify the relevant transaction and any purpose for which the money was received.1 An example of a record that would comply would be the Settlement Completion Record.
The definition of transit money requires that the money be paid to a third party, it cannot be paid to the client.2 If the money in the source account is to be paid to the client, it will be general trust money, not transit money.
Where the money is payable to the client it must be deposited into the general trust account, unless the practice has a written direction from an appropriate person, almost always the client, to deal with it otherwise than by depositing it in the trust account.3 The written direction could request the funds to be deposited into the clients account direct.
If you require further information please contact Trust Account Investigations on 07 3842 5908 or managertai@qls.com.au